Binding precedent under Dharmendra Textile Processors led to allowance of the Department's appeal.

The Supreme Court held that the Department's appeal was covered by the Larger Bench ruling in Dharmendra Textile Processors, which was noted as favouring the Department. Applying that binding precedent, the Court allowed the Civil Appeal. The operative point was that the issue raised by the Department stood resolved by the earlier Larger Bench decision, and the appeal succeeded on that basis.

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Issues: Whether the Department's appeal was to be allowed in view of the Larger Bench decision in Dharmendra Textile Processors.

Analysis: The matter was stated to be squarely covered by the Larger Bench judgment referred to in the order, which was noted as being in favour of the Department.

Conclusion: The Civil Appeal filed by the Department was allowed.

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